Bridging loans are short-term finance that can be used for the time between buying a new property and selling your old one. Bridging finance helps you to buy your new home whilst awaiting for the current sale and completion to go through.
A bridging loan is a type of short term finance that effectively bridges the time between buying your new home and the sale of your current property going through. This finance means that you can complete the purchase of your new house, before you have the finances available from the old one. There are many situations where it may be necessary, for example if there is a disruption in the property chain, or the market is moving very quickly and you could potentially lose the new dwelling. Bridging financing can be arranged very quickly, in as little as a few weeks, and provides the ideal solution to provide you with fast funding.
There may be many different reasons why you need to buy your new property, in advance of the sale of your current home finalising. Bridging loans are used to bridge the gap in finances between these two processes. Bridging loans can be utilised for a range of different reasons, as a short term loan.
Bridging finance is also accessible to both property developers and landlords, who are buying properties at auction. In these circumstances, a property often needs paying for in a short amount of time. This means the buyer can complete the sale, whilst their mortgage is still being organised.
Bridging loans are also very useful if a property is ‘unmortgageable’ and needs to be made habitable to be viable for a mortgage. Other situations include:
We understand that it can feel confusing when you're trying to understand the process of finding the right bridging loan for your requirements. There are many different bridging lenders on the market, and all of them have different products and services. With so many options available, we recommend that you use an FCA regulated broker to help you find the best option for your needs.
Get in touch with the team at Transparent Mortgage Services today, to discuss your specific requirements. We will help to find you the best deal, and can also provide guidance on other financial products which you may need, such as a mortgage.
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Bridging loans can be organised speedily, which is one of the reasons they are a useful choice. When we have found the best deal for you and you wish to go ahead, your application can be approved in as fast as a day. After this, you will receive the funds in approximately two weeks.
The interest rates on bridging loans is charged monthly but may be payable as a lump sum at the end of the loan's term. You can borrow as much as £5 million pounds and depending on your equity, generally the amount you are able to borrow is capped at 75% of what it's secured against. However, you can secure the bridging loan against more than one property, so that you can obtain adequate financing. Bridging loans aren't based on income, unlike mortgages.
Bridging finance is a short-term solution, which can get you essential funds quickly. Generally bridging loans are under a year, though sometimes longer term loans are feasible.
Transparent Mortgage Services are proud to be independent brokers, working across the UK. Our team are authorised and regulated by the Financial Conduct Authority (FCA) and we work with many clients throughout Eastbourne and the surrounding areas. If you need advice on getting a bridging loan in Eastbourne, or other financial products, contact our team today.
